Comments on: VC model changing but not broken

By: The Equity Kicker » Blog Archive » Musings on low cost start-ups and the importance of customer service

Mon, 13 Nov 2006 15:14:00 +0000

[...] It is usually only at the third stage of this that money on the venture capital scale is required and companies need less money overall. I have commented on this previously in Venture Capital Model Changing But Not Broken, You Gotta Go With Traffic, and You Can Only Go With Traffic. [...]

By: Deirdre Molloy

Deirdre Molloy — Tue, 24 Oct 2006 23:23:21 +0000

This is good stuff and very expansive thinking Nic. Thanks for coming along to the event and pushing the discussion forward.

By: Aggregators and upsetters and what it’s about « Beers & Innovation

Tue, 24 Oct 2006 21:51:36 +0000

[...] http://www.theequitykicker.com/2006/10/18/vc-model-changing-but-not-broken/ [...]

By: alanp

alanp — Thu, 19 Oct 2006 09:44:28 +0000

Nic

Sorry I missed you on Tues night, it would have been good to chat. Re your points above, I think the VC market has to change simply because of the economics, as you note.

I also feel, having dealt with VC’s quite a lot over the last 4 years, that many of them are still busy fighting the last war. As you say, if you wait for the business model it is too late to make serious money – If I recall correctly a McKinsey study showed that no VC made money in the dotcom boom if they were in after about 1997.

Venture Capital is just that – Venture – nothing ventured, nothing gained and you hedge your risk via a portfolio play.